This cement company announces a capex of Rs 3,642 crore!
The company has an impressive CAGR of 83 per cent on its profits over the span of 3 years, while also maintaining a solid 40 per cent CAGR over the past 5 years.
On Monday, Dalmia Bharat's stock experienced a notable increase of 1.89 per cent, reaching an intraday high of Rs 2,107.85.
Dalmia Bharat achieved an impressive 15.7 per cent YoY revenue growth in Q4FY23, reaching Rs 3,912 crore. Additionally, there was a 3.5 per cent surge in EBITDA, accompanied by a substantial 519 per cent increase in PAT. The company has an impressive 83 per cent CAGR in profits over three years and a solid 40 per cent CAGR over five years.
Dalmia Bharat has approved a capital expenditure of Rs 3,642 crore for the establishment of the following:
(a) A new clinkerisation unit with a capacity of 3.6 MTPA at its Umrangso unit.
(b) A new cement grinding unit with a capacity of 2.4 MTPA at its Lanka unit.
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Dalmia Bharat currently has an existing capacity of 41.1 MTPA, with a utilization rate of 62 per cent. The company has proposed a capacity addition as mentioned previously, with plans to complete it within the timeframe of FY 2025-26. The estimated investment required for this expansion is approximately Rs 3,642 crore, which will be financed through a combination of debt, equity and internal accruals. The rationale behind this strategic move is to meet the increasing demand in the rapidly growing cement market of the northeast region of India.
Dalmia Bharat is involved in the manufacturing and selling of cement. It was established in 1939 and currently holds the rank of the fourth-largest cement manufacturer in India based on its installed capacity.
Over the past year, the company has delivered outstanding returns of 50.6 per cent, while over the course of three years, it has achieved extraordinary returns of 275.5 per cent.
Investors should keep a close eye on this trending stock.